The Impact Of Different Uses Of Information Technology On Business Processes And Performance: An Active Learning Exercise

Abstract

Information technology (IT) spending now accounts for 23% of private non-resident investment, totaling $305 billion and nearly equaling the investments in structures and outstripping all other categories. Notwithstanding ITs importance the study of how different uses of IT have varying impacts on organizational processes and performance is the focus of few teaching materials. Since most students lack work experience, having students fully appreciate the nature and performance impacts of different uses of IT is challenging. To address this, we propose using the Aero-BAK Inc. simulation as a single class period active learning exercise. In the simulation students experience how the impacts of technologies that enhance communication and analysis capabilities (a surrogate for investment in informating IT) are different from those that perform physical tasks via a robot (a surrogate for automating IT). This helps students make more informed IT capital budgeting decisions. The exercise can be used in an introductory AIS, MIS, or operations management course, and with any textbook.